More than 51,000 workers covered under DGP as entry-level wages rise 15.79pct
KUALA LUMPUR: The Progressive Wage Policy (DGP) had exceeded its target of 50,000 participating workers, with 51,363 employees from 4,025 firms covered as at Dec 31, 2025.
The Progressive Wage Policy (DGP) in Malaysia has surpassed its initial target of 50,000 participating workers, with 51,363 employees from 4,025 firms now covered as of Dec 31, 2025. Economy Minister Akmal Nasrullah Mohd Nasir reported that the policy has positively impacted wage growth, with entry-level workers experiencing a 15.79% increase in median monthly wages to RM2,200 in 2025, while non-entry-level employees saw a 10.86% rise in median monthly wages to RM2,438.
The DGP policy emphasizes the need for participating workers to receive salaries in line with the DGP wage guidelines, which are based on factors such as median wages, inflation, unemployment rates, labour productivity, and GDP. Additionally, workers are required to undergo at least 21 hours of training annually to improve their skills and productivity.
The government has allocated RM300 million to support the policy's implementation from 2025 to 2027 and is exploring ways to extend its coverage to more employers. As of 2025, 4.36 million workers, or 61.8% of the workforce, received monthly wages between RM1,700 and RM4,999.
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